South African strike ends, automakers raise pay by 10%

Automobile manufacturers and a union representing thousands of auto workers have finally reached a deal on recent strikes in the country. The strike which affected big players like VW, GM, Nissan, BMW, Daimler and Toyota, came to an end when automakers agreed to pay employees a 10% increase in wages for the first year, and 9% in the next two years.

This is slightly lower than their demands of 15%, which is also higher than the country’s inflation rate which stands at 4.2% in July. Automobile Manufacturers Employers Organization (AMEO) initially offered a 7% increase in the first year and a rise equal to consumer price inflation in the remaining two years, which was swiftly rejected by National Union of Metalworkers of South Africa (NUMSA).

The deal was made just in time as the strike has led to the loss of production of 17,000 vehicles and continuation of the strikes would have caused major disruptions. South Africa’s auto industry accounts for 6 to 7 per cent of the country’s GDP, producing around 420,000 vehicles a year. Half of this is exported to other African states, Europe and North America.

Source

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Jacob Alexander

Jacob Mathew Alexander has been a motoring nut for as far as he can remember and has recently turned his passion into writing. After spending some time in the same industry in the UK, Jacob's work is from a slightly different perspective.

 

Comments

  • alldisc on Aug 23, 2010 at 10:49 am

    its never easy to be an employee, or an employer. there is a fine line to satisfy between the two parties.

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  • akupunya on Aug 23, 2010 at 11:29 am

    Malaysian auto workers don’t want to strike??
    ohh..malaysia use robotic machine..no strike though

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  • tomtom on Aug 23, 2010 at 11:44 am

    Wow.. 19% in 3 years? Perhaps i should organize the same strike at my office.

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  • autojohndoe on Aug 23, 2010 at 11:58 am

    Union Power!

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    • DonkeyKong on Aug 23, 2010 at 3:14 pm

      It’s this kind of “union power” in the US that led the American auto makers to bankruptcy

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      • littlefire on Aug 24, 2010 at 8:41 am

        Just US bankrap, doesnt mean the whole world Union will make the car manufacturer bankrap also? By the way, when the US auto manufacturer bankrap, the union took over the manufacturer temporary using their own share if not mistaken.. Still they manage to survive until now…

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  • auto hyumal on Aug 23, 2010 at 12:05 pm

    Peoples power!!! Auto maker bloodd sucker.

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  • azrai on Aug 23, 2010 at 12:29 pm

    So the strike really work and in future it will be the same again.

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  • littlefire on Aug 23, 2010 at 12:44 pm

    Well, if want to be a high earning sociaty, u will need a strong worker union… I still wonder how our G can make us become higher earning country..

    The only worker union that is success in our country is those working in banking line.. Ask those working in banks and u will know how much they are getting for their income & bonuses..

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    • autojohndoe on Aug 23, 2010 at 1:16 pm

      lets work at the bank!!!

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    • And become like US. Bankruptcy all over the place still wanna flex their muscles all the time.Auto-union etc.

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    • karpal sinking on Aug 23, 2010 at 6:49 pm

      the doctor & pharmacy’s union in this country is quite good..
      especially the doctor’s

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    • tokan on Aug 23, 2010 at 8:44 pm

      IMHO, strong worker union could only fight for a better pay but won’t make a high earning society. Because in the end, the increase in cost will be borne by customer which will cause inflation.it just like chain reaction.better pay but price increase in goods.the gap between rich and poor even bigger.

      IMHO, to become a high earning country, u need to be a producer country.

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      • littlefire on Aug 24, 2010 at 8:34 am

        Even China, 1 of the biggest producer country also have a lot of worker boikoting for higher pay… Already forget the Auto Union workers boikoting at a few car manufacturing company there?

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  • Tow trucks on Aug 23, 2010 at 2:40 pm

    Workers in the automobile manufacturing industry are the important asset of earning society.

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  • DonkeyKong on Aug 23, 2010 at 3:14 pm

    If Volkswagen was managed by mamaks like the nasi kandar operators in Malaysia, they will increase the workers’ pay by 10% but increase car prices by 25% and tell us “banyak susah cari makan.. semua harga naik”.

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  • Hameed Koyakuti on Aug 23, 2010 at 4:18 pm

    In Korea, the production worker’s income is more than the middle manager of KIA, Hyundai and Ssangyong. Worker got a lot benefits, volume incentives, shift allowances, qualtity initiatives etc. and can reach up to RM 15,000.00 / month. Wherelse middle managers only earn around RM 9k~12k / month.

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  • I’m a US trained construction engineer with 3 years experience. I earn RM4,000 a month only. I’m going on strike! I deserve a 50% raise and a 12 month bonus!

    Union? Where are you union? Malaysian engineer union? No? Then who’s taking care of me then? CEUPACS? No? Damn, I should have taken motor vehicle assembly in college. No, I should have taken accounting so I could be a bankster or the bossman of bank clerks.

    life is not fair. haha padan muka aku.

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    • littlefire on Aug 24, 2010 at 8:39 am

      Why not u organize 1 Workers union for engineering? Dont be a NATO, work for it? I tot engineer should be like that right? To find solution for each problem? Sure a lot of people in Malaysia will support u!

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  • fatcat on Aug 23, 2010 at 6:21 pm

    Let’s go on strike and see if we get a pay increase !

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  • feisal on Aug 23, 2010 at 7:02 pm

    Time to move production to southeast asia.

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